Winchester, Region 7 school boards ask state for help

WINSTED >> Winchester students’ education may be at risk due to the town’s inability to adequately fund the board of education, officials are claiming. As a result, the town’s board of education is asking the state to investigate whether the town is fulfilling its obligation to educate its students.

Both Winchester’s Board of Education and Region No. 7 (Barkhamsted, Colebrook, New Hartford and Norfolk) went above the town to find a solution to financial issues that are becoming burdensome to the board and its vendors.

On Friday, Tom Danehy, superintendent of Winchester Public Schools, sent a notice to Stefan Pryor, commissioner of education with the state Department of Education, imploring that it takes action

“I write to you in reference of the Winchester Board of Education’s inability to pay vendors for services rendered in the 2012-13 school year,” he wrote. “As of today, the board has accounts payable of $727,920.91.”

Danehy said that the town has proven that it will be unable to fund the schools at the minimum budget requirement, which is $19,958,149 for the year. This amount has been the same for several years, according to Danehy. The Winchester Board of Selectmen appropriated the amount and sent it to referendum to be voted on by the residents. It has always been approved.

“Consequently, given the town’s inability to fund the board of education with enough to pay its bills, I have grave reservations that the Board of Education will actually have access to the statutory minimum requirement,” he said. “Furthermore, our students’ education is at risk for being harmed.”

The town gets Education Cost Sharing payments from the state three times a year. In both October and January, ECS disburses 25 percent of $8 million. Towards the end of April the last 50 percent is disbursed. About $12 million of the board’s annual budget is funded by taxpayers. In total, the board of education is supposed to receive about $20 million for the entire school year. This allotment goes towards funding payroll, and paying the board’s vendors – Region No. 7, The Gilbert School, Shared Services and others.

In a conversation with Winchester Town Manager, Dale Martin, Danehy urged that the town’s disbursement of payments to the board of education occur in a more cost effective way. Martin said Danehy’s request was unreasonable.

Martin said the suggestion was to give the board of education an allotment of $1.2 million in July, $1.6 million in August and $1.7 for each of the six months after.

“Here’s where the financial model begins to break down,” Martin said. “We’d have to raise taxes to cover the town and the school for half a year. I’d have to generate significant taxes revenue to raise $16 million dollars.”

Martin said he doesn’t think the general public understands that the financial model for funding the school is “not sustainable.”

“When you add in the factor of the former finance director, and the issue of the general fund financing the water and sewer fund, that’s what led us to where we are today,” he said. “Other communities can get through because they rely on their fund balance or their savings.”

Martin was referencing former finance director Henry Centrella, who was arrested after police said he stole more than $2 million from the town.

Only one day before Danehy contacted the state, Judith Palmer, superintendent of Region No. 7 contacted the state’s Office of Policy and Management to “go on record” about the town’s financial debacle.

“We’re all working towards the same goal,” Palmer said. “We know there’s just not enough money and that’s the problem.”

Palmer’s two-page letter addressed her concerns about the town and said she hopes OPM can help.

“I am writing to inform you of a serious situation regarding services provided by Regional School District No. 7 and Shared Services, Cooperative Education Service Center that provides specialized services and special education, to the Winchester Board of Education and [its] failure to pay the for these services,” Palmer wrote to Gian-Carl Casa, Under Secretary for Legislative Affair for the Office of Policy and Management. “It is my hope that you will pass these concerns along to the Municipal Finance Advisory Commission so they can consider this information in their decision making process.”

Martin, and current Finance Director Robin Manuele will be meeting with the Municipal Finance Advisory Council in Hartford Thursday morning. Casa said the council will only provide the town with some financial counseling.

“To the degree that we can help Winchester and Winsted work through its financial problems we will,” he said. “We’re hoping that they will be able to, as a result, pay and appropriate the necessary amounts to Region 7 and other entities they owe money to.”

The board of education received $92,772.92 from the state as a result of a surplus in Municipal Revenue Sharing. Because of the unexpected income the board of education was able to pay Region No.7 the $58,000 it owed for last year’s student tuition. The rest of the money was given to Shared Services for unpaid bills.

Though the board of education made Region No. 7 whole with these payments, to date the Winchester still owes Shared Services $192,576 for services rendered during the 2012-13 school year.

“Because Shared Services is a small operation, they will not be able to meet payroll if this bill is not paid,” Palmer Said. “Therefore, at a time the state is encouraging shared services and regional cooperation, the one organization that has a long history of regional cooperation is at risk of failing because of this non-payment.”

Palmer said that the council should be made aware that Winchester has a “long history of untimely payments” to both of those creditors.

According to Palmer, Winchester’s board of education has enrolled students in Shared Services programs for the 2013-14 school year making this year’s tuition payment around $800,000.

“Again, there is concern that payments for the current fiscal year will not be paid,” she said. “Neither Shared Services or Region No. 7 can bear the cost of Winchester’s student for the upcoming year. Without payment, Shared Services can no longer maintain operations.”

Winchester’s board of education urged the town to increase taxes in a letter addressed to Martin on Aug. 29. The tax increase would go towards proper funding of the board of education’s minimum budget requirement. However, Martin said raising taxes is not a possibility.

“[It’s not a consideration]. Not to fund the school on behalf of the state,” he said, “When the state should be giving us money anyway. What [Danhey] is asking for is not practical.”

Martin said the request to raise taxes and to change the disbursements would be impossible.

“It’s doable if you have a fund balance,” he said. “But I question if that’s even an appropriate use of the fund balance. To float money on behalf of the state obligations.”

It’s possible that the board of education will no longer be able to afford education for its students, which is a state of Connecticut right, according to school board officials.

“I implore you to begin 10-4d proceedings against the Town of Winchester so that our students are no longer at risk of educational harm,” Danehy told the State Department of education. “The Winchester Board of Education is unable to implement the education interest of the state with the current financial funding structure established by the Town of Winchester.”

A 10-4d proceeding signifies a complaint alleging failure or inability of board of education to implement educational interests of the state.

Danehy has yet to receive a response from the state board of education. Though he says he understands the town’s current economic crisis, he notes that the board of education cannot effectively run a business with lack of funding.

“We’re not oblivious to the town’s plights,” he said. “But the creditors are on our tails.”

About the Author

Reporter Mercy Quaye covers statewide breaking news for The New Haven Register, The Middletown Press, and The Register Citizen. Reach the author at mquaye@registercitizen.com
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